Malaysia – IDBG Investment Forum Investing in Construction Sector Presented By: Datuk Ir. Hamzah Hasan 10 May 2012 Contents • ABOUT CIDB - Roles and Functions • CONSTRUCTION SCENARIO • BUILDING CAPACITY AND CAPABILITY • NOTABLE PROJECTS - Local and Foreign Achievements • OPPORTUNITIES IN CONSTRUCTION ABOUT CIDB Established under the Act 520 – Construction Industry Development Board 1994. Revised 2011 Statutory body under the Ministry of Works, Malaysia. Began operation in 1995. Main income from levy on construction contracts worth more than RM500,000.00 (around RM90 million annually) ABOUT CIDB MISSION ”TO DEVELOP THE MALAYSIAN CONSTRUCTION INDUSTRY” VISION ”CIDB TO BE A DISTINGUISHED ORGANISATION IN DEVELOPING A WORLD CLASS CONSTRUCTION INDUSTRY” ABOUT CIDB SUB-SECTION 4(1) ACT 520 FUNCTIONS OF CIDB MALAYSIA DEVELOPMENT & FACILITATIVE REGULATORY ADVISORY ABOUT CIDB SUB-SECTION 4(1) ACT 520 1. DEVELOPMENT AND FACILITATIVE • Promote and stimulate research • Promote, stimulate and assist in the export construction related services • Promote Quality Assurance • Initiate and maintain the construction industry information systems • Promote, review and coordinate training programmes • Encourage standardisation and improvement of construction techniques and materials ABOUT CIDB SUB-SECTION 4(1) ACT 520 2. ADVISORY • Advice and make recommendations to Federal and State Governments • Promote and stimulate the development of construction industry • Provide consultancy and advisory services 3. REGULATORY • Accredit and Register contractors • Accredit and Certify construction workers and site supervisors Construction Scenario Characteristics of Malaysian Construction Gross annual output of RM60 – RM90 billion, 85% new built 3-3.5% contribution to GDP Engages over 900,000 personnel, 8% of total Malaysian labour Over 65,000 registered contractors, predominantly SME types employing less than 5 people. 10 Trends of Projects Awarded 11 Projects by Local & Foreign Contractors 12 Registered Contractors = 64,066 13 Malaysia Construction Industry Achievements Past, Present & Future High-Rise Buildings High-Rise Housings Bangsar South Pavillion Apartments PETRONAS Twin Towers The tallest twin buildings ever built Cost: USD 1.6 billion Development: 1992-1998 Kuala Lumpur International Airport • Start Date: March 1993 • Completion Date: June 1998 • Built on 10,000 hectares of varied ecological setting • Cost: 3.5 billion USD • KLIA was thrice voted as the World's Best Airport • Capable of handling 35 millions passengers every year Putrajaya North-South Expressway Guthrie Corridor Expressway • Length: 25 km • Cost: 280 million USD • Connects the cities of Shah Alam and Rawang Ampang Kuala Lumpur Elevated Highway • Length: 7.9 km • Cost: 260 million USD • Malaysia’s first intra-urban highway Maju Expressway (MEX) • Length: 26 km • Links the Kuala Lumpur City Centre with the Kuala Lumpur International Airport (KLIA) SMART Tunnel Stormwater Management and Road Tunnel 9.7 km in length, longest tunnel in Malaysia Cost: USD 543 million Development: 2003-2007 Kuala Lumpur Outer Ring Road (KLORR) • Length: 40km • Cost: 493 million USD • Orbital ring road within the greater Kuala Lumpur area Damansara-Shah Alam Elevated Expressway (DASH) • Length: 20.1km • Three-lane, dual carriageway expressway Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) • Length: 31.8 km • Three-lane, dual carriageway expressway Penang Bridge • Length: 13.5 km, connects mainland of Peninsular Malaysia to island of Penang • Handles 65,000 vehicles 1st Bridge daily • Length: 24 km, still under construction and now 70% completed. 2nd Bridge Possibilities of Bridging 3 Nations • Bridge connecting Malaysia and Indonesia • Underground tunnel connecting Malaysia and Singapore Oil & Gas Oil rig platform fabricated by Kencana Petroleum Kencana fabrication yard in Lumut, Malaysia Westports Malaysia World class, state of the art multi-cargo seaport terminal Monorail • Opened on 31 August 2003 • Cost: of 390 million USD • Serves 11 stations running 8.6 km (5 mi) with two parallel elevated tracks Light Rail Transit Express Rail Link • Standard gauge and electrified airport rail link • Length: 57 km • Connects the Kuala Lumpur International Airport (KLIA) with the Kuala Lumpur Sentral (KL Sentral) transportation hub Mass Rapid Transit Power Plants • Malakoff Tanjung Bin • 700MW x 3 Power Plant • TNB Manjung • 1000MW Power Plant Power Plants • The Sultan Ismail Power Station, Paka, Terengganu • Generates 1,136MW Power Plants • The Bakun Hydroelectric Dam • Second highest concrete faced rockfill dam in the world • Upon completion, it will generate 2400MW of clean electricity • Emission-free and has a 0% impact on global warming Hospitals • Prince Court Medical Centre • 300-bed private healthcare facility located in the heart of Kuala Lumpur • Fully owned by Petronas, Malaysia's national petroleum company Hospitals • KPJ Healthcare Berhad is a leading private healthcare provider in the country with a network of 20 hospitals in Malaysia and two in Indonesia Spa Resorts Genting Highland: City of Entertainment Sepang International Circuit Officially opened in 1999 Major race events: Formula 1, MotoGP River of Life One of Entry Point Projects (EPP) under the Economic Transformation Programme (ETP). Aims to transform the Klang River into a vibrant and livable waterfront with high economic value. Economic Corridors i. Northern Corridor Economic Region (NCER) ii. Eastern Corridor Economic Region (ECER) iii. Sarawak Corridor for Renewable Energy (SCORE) iv. Sabah Development Corridor (SDC) v. Iskandar Development Region (IDR) Malaysia Construction Industry International Achievements Burj al-Arab • Steel structural works for the Burj al-Arab Hotel in Dubai F1 International Circuit in Bahrain • Construction and maintenance of Bahrain F1 International Circuit • Delivered the project two days ahead of schedule, with a record time of 16 months! Khalifa Olympic Stadium • Specialist steel work awarded to Malaysian company New Doha International Airport • Design and construction of the airport’s airfield facilities, tunnel and detention ponds • A consortium of Malaysian construction companies Dukhan Highway in Qatar • Construction of a 42.5 KM four-lane dual carriageway • Including underpasses, bridges and ancillary works with five major interchanges, service roads, beautification works and underground pipelines for water, electricity, drainage and oil Malaysian Construction Companies Market Penetration Malaysian Construction Companies Secured Projects China 71 Projects USD 4.8b India 87 Projects USD 1.8b 196-Hectare Bandar Malaysia Project KL Eco City Integrated development comprising Residential, Offices & Retail Designed by world-renowned architect and master planner, Jerde KL Metropolis KL Sentral Integrated development comprising Residential, Offices & Retail Designed by world-renowned architect and master planner, Jerde WHERE ARE WE HEADING? 59 10MP Construction Demand RM 230 Billion 52 High Impact Projects 40% • 6 highways – RM19 b Non-physical Infrastructure • 2 power station – RM7 b Development (RM92.0 billion) 60% • Redevelopment Sg. Buloh – RM10 b Physical Infrastructure • Double Tracking Train Projects – RM8 b Development • LRT Expansion- 34km – RM7 b (RM138.0 billion) • Iskandar Development – RM59 b • 12,000 km paved roads • Clean water supply to 220,000 households • Public clinics - RM637 m • Hospitals - RM600 m • Greater KL 60 Construction Demand 2012 High Impact Project, Second rolling Plan – RM49 b Budget • Gemas-Johor Double Tracking Rail Project • Lebuhraya Pantai Timur Jabor – K. Terengganu. • Lebuhraya Pantai Barat Banting - Taiping. 21% Development • Lebuhraya Segamat - Tangkak. 79% • Lebuhraya Central Spine. Operating • Jalan Kota Merudu - Ranau. • Redevelopment of The Sungai Besi Kuala Lumpur Air Base RM230 billion 61 Construction Demand Real Estate Development • RRI Development (1MDB) – RM10 b • Kuala Lumpur International Financial District (KLIFD)-(1MDB) – RM26 b • Sg. Besi Airport to be Bandar Malaysia(1MDB) • New MITI and MATRADE Center – RM1.2 b • Kuala Terengganu City Center – GDV RM5 b • Smart City in Cyberjaya – GDV RM10 b • K.L. Eco City – GDV RM6 b • Bukit Bintang City Center – GDV RM6.7 b Public-Private Partnership (PPP) Sharing of: Public 1. Investment Private 2. Risk 3. Responsibility 4. Reward Completed PPP Projects in Malaysia Greater Kuala Lumpur / Klang Valley KL – Singapore High Speed Rail System Sg. Buloh – Kajang Mass Rapid Transit Line Greener Kuala Lumpur CIDB is ready to facilitate your investment in construction Thank You Construction Industry Development Board Level 7, Grand Seasons Avenue 72, Jalan Pahang, 53000 Kuala Lumpur MALAYSIA Tel: +603-2617 0200 Fax: +603-2617 0220 Website: www.cidb.gov.my .